What Are the Requirements for Establishing a Company in Thailand? Key Eligibility Criteria for Registering a Company in Thailand

Many people considering registering a company in Thailand immediately ask “How high are the entry barriers?” “Can foreigners do it?” and “How much does it cost?” The answers are actually quite clear Thailand maintains a relatively high level of openness toward foreign investors-but all mandatory requirements must be fully met, with no exceptions allowed.

Basic Eligibility Requirements for Registering a Company in Thailand

1. At least one natural person shareholder is required; nationality is unrestricted, and the shareholder may be a foreign national;

2. At least one director is required, who must be at least 20 years of age, have no record of bankruptcy or criminal conviction, and may be a foreign national;

3. The company’s registered capital must be at least 25% fully paid-in, and must not fall below the par value per share (typically THB 5). The recommended minimum registered capital is no less than THB 1 million (higher amounts may apply if applying for a work permit or Board of Investment [BOI] incentives);

4. A physical registered office address in Thailand is mandatory. This address must be supported by a genuine lease agreement and a letter of consent from the property owner. Virtual offices or mailbox services cannot serve as the statutory registered address;

5. The company name must be pre-approved by the Thai Ministry of Commerce. It must not duplicate any existing business name and must include either “Company Limited” or its abbreviation “Co., Ltd.”

Key Steps in the Statutory Registration Process for a Thai Company

1. Name reservation and preliminary screening Submit three alternative names to the Thai Ministry of Commerce; upon approval, the reserved name remains valid for 30 days;

2. Identity verification for shareholders and directors Foreign nationals must provide certified copies of their passports, proof of residential address (e.g., utility bills or bank statements), and an authenticated certificate of no criminal record;

3. Execution and notarization of the Articles of Association All shareholders must appear in person-or appoint an authorized representative whose power of attorney has been legalized under the Hague Apostille Convention;

4. Submission of the company registration application (Form BorJor 20) to the Ministry of Commerce, along with payment of the registration fee (starting at approximately THB 7,000);

5. Collection of the Certificate of Incorporation, corporate seal, and tax identification number (PP.20). The entire process typically takes 7-15 working days.

Compliance Requirements Frequently Overlooked in Thai Company Registration

For companies in which foreign shareholders hold more than 49% of equity, a Foreign Business License (FBL) is mandatory when engaging in sectors restricted under the Foreign Business Act-such as real estate brokerage, advertising, and education;

Within 60 days of incorporation, all companies must complete tax registration and appoint a Thai-licensed accounting firm to perform annual audits and file corporate income tax returns;

If hiring foreign employees, the company must allocate at least THB 2 million of registered capital per foreign employee, and must demonstrate sustained operational capacity-evidenced by a minimum average monthly turnover of THB 180,000.

The above outlines the core eligibility criteria and critical procedural steps required to register a company in Thailand. Should you have related questions-or wish to explore topics such as optimal registered capital structuring, industry-specific market access restrictions, or integrated work visa solutions-we recommend consulting a qualified local legal advisor licensed to practice in Thailand. Such consultation should be tailored to your specific business model and long-term operational objectives.